TripAdvisor stock price target raised at DA Davidson

On Wednesday, DA Davidson updated their financial model for TripAdvisor (NASDAQ:TRIP), resulting in a slight increase in the company’s price target. The new target is set at $16.25, up from $16.00, while the firm maintains a Neutral rating on the stock. The adjustment follows TripAdvisor’s first-quarter earnings for 2025, which were reported on May 7, 2025. According to InvestingPro analysis, TripAdvisor appears undervalued compared to its Fair Value, with analyst targets ranging from $11 to $24.

Analysts at DA Davidson have cited a strong start to the second quarter and a better-than-expected performance in the first quarter as the reasons for the revision. TripAdvisor’s revenue for the first quarter was $398.2 million, a 1% year-over-year increase, which also exceeded the consensus forecast of $386 million and DA Davidson’s own estimate of $389.7 million. The company’s trailing twelve-month revenue stands at $1.84 billion, with a healthy gross profit margin of 61.6%.

The travel platform’s adjusted EBITDA for the first quarter was reported at $43.8 million, which translates to an 11.0% margin. This figure notably surpassed both the consensus estimate of $24 million and DA Davidson’s estimate of $23.5 million. The analysts highlighted TripAdvisor’s operational expenditure discipline as a contributing factor to the improved adjusted EBITDA estimate, which is now set at approximately $346.1 million for the year 2025, a roughly 4% increase. InvestingPro data shows the company operates with moderate debt levels and maintains strong liquidity, with a current ratio of 1.9.

The revised price target implies a valuation of 5.5 times the firm’s 2025 estimated enterprise value to EBITDA (EV/EBITDA) for TripAdvisor. The analysts have slightly increased their 2025 revenue estimate for the company by less than 1%, reflecting the solid performance in the first quarter and a positive beginning to the second quarter.

TripAdvisor’s financial results indicate a steady growth trajectory as the company continues to manage its operational expenses effectively. The updated figures from DA Davidson provide a snapshot of the company’s current financial health and future expectations as it navigates the competitive travel industry landscape.

In other recent news, TripAdvisor reported a strong performance for the first quarter of 2025, with earnings per share (EPS) of $0.14, significantly surpassing the forecasted $0.04. The company’s revenue reached $398 million, slightly above the anticipated $388.65 million, marking a 1% year-over-year increase. Despite these positive results, Cantor Fitzgerald maintained an Underweight rating on TripAdvisor stock with an $11.00 price target, noting that EBITDA fell short by 6% according to consensus data. Meanwhile, Jefferies raised its price target for TripAdvisor from $10.00 to $11.00, while maintaining an Underperform rating, reflecting concerns about ongoing margin pressure and macroeconomic challenges. Citi analysts also initiated coverage with a Neutral rating and a $16.00 price target, citing positive revenue trends but expressing caution due to economic uncertainties. Additionally, TripAdvisor completed a merger with Liberty TripAdvisor Holdings (OTC:LTRPA), retiring 17% of its shares outstanding, a move aimed at increasing the company’s independence and flexibility. These developments highlight TripAdvisor’s strategic efforts to navigate a dynamic travel market while managing cost pressures and leveraging growth opportunities in its Viator segment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.